Earlier this year, an American multi-millionaire spent US$600,000 on a luxurious 3,000-square-foot villa in Bali. No big deal, you might say.

What made the sale interesting was that it was entirely transacted in Bitcoins, making it the largest digital currency-only transaction to date.

The purchase was made through the world’s first – and only – Bitcoin luxury marketplace, BitPremier, headed by US-based financier Alan Silbert. BitPremier works a bit like JamesEdition, but using Bitcoins as the currency of transfer. The concept is simple: vendors list an item and Bitcoin holders can buy it online, with a 5 percent fee charged to the vendor. BitPremier acts as the intermediary and both parties remain anonymous until the terms are finalised.